Federal judge blocks NYC Mayor Zohran Mamdani property sale intervention

A federal judge on Thursday blocked New York City Mayor Zahran Mamdani’s efforts to interfere in the sale of thousands of rent-stabilized properties.

Mamdani’s management sought to slow the sale of the properties after tenants complained that the seller, Pinnacle Group, had poorly maintained the properties and were concerned that the potential buyer, Summit Properties USA, would face similar issues.

Mamdani’s management attempted to intervene on the grounds that it was a creditor of Pinnacle. The company owes the city more than $12 million in unpaid fines, according to Gothamist.

However, Bankruptcy Judge David Jones rejected Mamdani’s efforts, setting back the new mayor’s first foray into New York City’s housing market.

MAMDANI Official CEA WEAVER says she regrets some of her past statements after controversial posts emerged

Jones could agree to the sale to Summit as soon as Thursday, but Mamdani’s management says it is still examining options.

“We will continue to fight to ensure that any landlord in this portfolio makes the necessary repairs to bring the buildings into compliance and respect rent stabilization regulations,” Leila Bozorg, the city’s deputy mayor for housing, told the site.

The court defeat comes on the heels of another controversy that hurt Mamdani’s housing agenda, his appointment of Cea Weaver to lead the mayor’s office of tenant protections. Weaver has previously stated that home ownership is a “weapon of white supremacy” and argued that ownership should be treated as a “collective good.”

Hours after taking office, New York City Mayor Mamdani is targeting landlords and moving to intervene in a private bankruptcy case

Mayor Mamdani’s administration says it is considering its options on how to proceed with the sale of Pinnacle Group. (Spencer Platt/Getty Images/Getty Images)

Amid controversy over her comments, Weaver She said she regretted “some” From her past comments and while she did not specify which statements she regrets, Weaver said she aims to address “racial inequality” while serving New Yorkers.

“But, you know, I think my decades of experience fighting for affordable housing stands on its own,” Weaver said. “I’m proud to be in this role to fight for stronger rights for renters. I believe that for too many years, people have been locked out of the real estate market, leading to systemic inequality and racism in our system.”

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“I want to make sure everyone has a safe and affordable place to live — whether they rent or own,” she added. “That is something I am very focused on in this new role.”

Fox News’ Alec Shimel contributed to this report.